EBRD maintains forecast for Russia’s GDP growth of 1.2% in 2017

NICOSIA, Cyprus, May 10 (PRIME) -- The European Bank for Reconstruction and Development (EBRD) has maintained its 2017 Russian economic growth forecast at 1.2% and expects the gross domestic product to expand by 1.4% in 2018, the bank said on Wednesday in its Regional Economic Prospect report.

The Russian economy started to grow after an about 3% cumulative contraction in 2015–2016, but investment activity is still restrained by economic uncertainty and a relatively high cost of financing. The gradual restoration of oil prices, household consumption and investment will support the Russian economic recovery in 2017 and 2018, the EBRD said.

But there are risks, including contraction of oil prices, the lack of reforms to improve business environment and support investment, geopolitical tensions, and prolongation of sanctions. Without significant reforms, low investment will limit long-term growth of the economy at 1–2% per year, the bank said.

Russian Economic Development Minister Maxim Oreshkin said in April that the country’s GDP may grow 2% in 2017.

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